Wintrust Financial Corporation, the US financial holding firm, has agreed to acquire Chicago investment manager Great Lakes Advisors for an undisclosed sum.

Great Lakes has approximately $2.4 billion in assets under management and specializes in domestic equity and fixed income investment strategies for institutional clients. Upon completion of the deal, GLA will merge with Wintrust's existing asset management business, Wintrust Capital Management. In a statement, the company said that this will create a new entity with almost $4.5 billion in AUM.

"Building our asset management capabilities is a strategic priority for us and this merger will represent a major step forward. With this acquisition, we will establish ourselves as a key player in the institutional investment market in the Midwest," said Tom Kiley, the managing director of GLA who will become the chief executive of the combined firm upon completion of the merger.

The transaction is expected to be completed in the second quarter of this year, subject to regulatory approvals.